Bombardier Closes $500 Million Senior Notes Offering Due 2033
On May 29, 2025, Bombardier Inc. (“Bombardier”), an industry leading business jet manufacturer, announced the successful closure of a $500 million Senior Notes offering due June 15, 2033. The notes, carrying a 6.750% coupon rate and sold at par, reflect Bombardier’s strategic efforts to optimize its capital structure. The announcement, detailed in a Bombardier’s press release, underscores the company’s focus on reducing borrowing costs and extending debt maturities in a strong aviation market.
The proceeds, combined with cash reserves, will fund the redemption of $500 million of Bombardier’s 7.875% Senior Notes due 2027, with $683,142,000 outstanding as of May 29, 2025. The redemption is scheduled for June 13, 2025, following a notice issued on May 14, 2025. This refinancing lowers Bombardier’s interest expenses, replacing higher-rate debt with lower-cost, longer-term notes, enhancing financial flexibility.
Éric Martel, President and CEO, highlighted the company’s financial progress during the Q1 2025 earnings call: “Our continued focus on operational excellence and financial discipline has strengthened our balance sheet, allowing us to refinance debt at favorable rates.” Bart Demosky, EVP and CFO, added, “This strategic refinancing supports our deleveraging goals, positioning us to sustain growth while managing costs effectively.” These statements reflect Bombardier’s commitment to fiscal resilience, supported by a Moody’s Ratings outlook upgrade to positive in April 2025, citing improved cash flow and margins.
Bombardier’s Q1 2025 financial results, reported on May 1, 2025, show revenues of $1.4 billion, a 13% increase year-over-year, driven by 22 aircraft deliveries and a 20% rise in aftermarket services. The company achieved a net leverage ratio of 2.9x in 2024, meeting its 2025 target early, as noted in its 2024 annual report. A 1x book-to-bill ratio in 2024 and a $14.4 billion backlog underscore strong demand for Bombardier’s Global and Challenger aircraft.
Analysts at National Bank Financial project a Q2 2025 EPS of $1.70, reflecting confidence in Bombardier’s performance despite withholding 2025 guidance due to potential U.S. tariffs. The tariff uncertainty, stemming from February 2025 executive orders, poses risks, but Bombardier’s diversified revenue streams and proactive debt management mitigate exposure.
This notes issuance reduces Bombardier’s cost of capital and extends its debt maturity profile, positioning the company to navigate market challenges while capitalizing on robust demand for business jets. With a focus on operational efficiency and financial discipline, Bombardier continues to strengthen its position as a leader in business aviation.
Bombardier:
This press release does not constitute an offer to sell or buy or the solicitation of an offer to buy or sell any security and shall not constitute an offer, solicitation, sale or purchase of any securities in any jurisdiction in which such offering, solicitation, sale or purchase would be unlawful.
The New Notes mentioned herein have not been and will not be registered under the United States Securities Act of 1933, as amended, any state securities laws or the laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. The New Notes mentioned herein were offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the U.S. Securities Act and outside the United States in reliance on Regulation S under the U.S. Securities Act. The New Notes mentioned herein have not been and will not be qualified for distribution to the public under applicable Canadian securities laws and, accordingly, any offer and sale of the securities in Canada was made on a basis which is exempt from the prospectus requirements of such securities laws. The New Notes were offered and sold in Canada on a private placement basis only to “accredited investors” pursuant to certain prospectus exemptions.
FORWARD-LOOKING STATEMENTS
Certain statements in this announcement are forward-looking statements based on current expectations. By their nature, forward-looking statements require us to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from those set forth in the forward-looking statements.